Microsoft’s CEO Satya Nadella has stated that Xbox must develop a “sustainable business model”

Satya Nadella, the CEO of Microsoft, emphasized the necessity for Xbox to develop a viable “sustainable business model” to enable broader dissemination of its games. In a discussion on the Sources Podcast, he commented on the significant reductions that new Xbox head, Asha Sharma, has implemented, labeling the resultant downsizing—which led to substantial job losses and potential studio shutdowns—as a positive move. Nadella expressed optimism about a potential “return to growth” for Xbox in the next fiscal year (2027/28).

Nadella expressed confidence in the company’s creative assets and future gaming production capabilities: “With our studios and intellectual property, I am very optimistic.” He noted the ongoing “streamlining” efforts led by Asha and her team, regarding them as beneficial. He pointed out the importance of crafting a proper business model to extend gaming across PCs and Xbox consoles, underscoring Microsoft’s ambition to…